Low-volume bounce

The green bars seen in the last 24 hours are smaller compared to the red bars observed during the price drop $10,600 to $9,755.

Put simply, the buying pressure remained weak as prices rose from $9,755 to $10,255. A low-volume bounce is often short-lived.

Also, the cryptocurrency has dived out of a rising wedge – a bearish reversal pattern which indicates the corrective bounce from $9,755 has ended and the bears have regained control.

As per technical theory, the price seen at the beginning of a rising wedge formation becomes the minimum downside target once a breakdown is confirmed. So, a fall back to $9,755 could be on the cards.

A rally to $10,550-$10,600 could be seen if prices break above the wedge’s high of $10,255 with decent volumes. The outlook, however, will remain bearish as long as prices are held below $10,956.

Daily and 4-hour charts

BTC’s bounce from the 100-day MA support seen on Aug. 15 ended up charting a bearish lower high (shallow bounce) at $10,956 on Aug. 30 (above right).

So, $10,956 is the level to beat for the bulls in the short-term.

The case for a drop to $9,467 put forward by the rising wedge breakdown on the 4-hour chart (above right) earlier this week will remain valid as long as prices are held below $10,807 – the high of the candle confirming the breakdown.

3-day chart

BTC created a bearish outside bar candlestick pattern in the three days to Aug. 20. A bearish outside bar appears when a specific period’s price action engulfs the preceding period’s high and low.

That candlestick pattern marks a continuation of the selloff from the high of $12,325 reached in the first week of August.

All-in-all, the probability of BTC falling to the recent low of $9,467 in the short-term seems high. The outlook as per the three-day chart would turn bullish if and when prices find acceptance above the trendline connecting June and July highs.

As of writing, BTC is changing hands at $10,140 on Bitstamp, representing a 1.5 percent gain on a 24-hour basis.

Disclosure: The author holds no cryptocurrency assets at the time of writing.